Tax hike looms over North Brunswick

North Brunswick Mayor Francis "Mack" Womack III thinks a "black cloud" will hang over local governments for the next few years.

There are certainly signs of its presence in his town. Take, for example, the township's tax ratables, which fell about $31 million in 2008.

That loss, the first in years, will likely translate into the average homeowner, with a house valued at $157,000, paying about $7 or $8 in additional municipal taxes next year, township Business Administrator Robert Lombard said.

The drop, which was earlier thought to be just $8 million, occurred due to property owners winning challenges of assessments, Lombard said. It's the first time since he started in 2000 that challenges resulted in the base going down.

That, combined with lost state aid, the 4-percent state-mandated tax cap and the $31 million hit to the tax ratable base, means cuts will need to be made - with attrition and layoffs not far from the table.

"It's a perfect storm for local governments right now," said Lombard, who is working to prepare a budget for the 2009-2010 fiscal year.

To cope, Mayor Womack is toying with the idea of allowing large retail chains to build in North Brunswick. It's a change of attitude for the township, whose leaders had previously told any developers with plans to bring big-box stores to the area to take a hike, Womack said.

But times are tough now, so the mayor said he and members of the council owe it to taxpayers to entertain any idea that might mean lower tax rates.

"We've got to be open to the possibility and we've got to look at each proposal on its own," he said Friday.

The townships already talking to developer TOD Associates about building several big stores on its 212-acre property at the former Johnson & Johnson campus on Route 1. The group would like to put in stores like Kohl's, Costco and Lowe's or The Home Depot, Womack said.

Jonathan Frieder, a managing partner for the developers and ownership group, did not return a call seeking comment yesterday.

The mayor said he's listening to Frieder's plans, but he really wants the public involved in any decision to allow the project. He also wants to see specifics of how a retail project would fit into a future transit hub on the site, which borders the Northeast Corridor railway lines.

"I will vehemently oppose your project," Womack said he's told Frieder, "if you can't show me today how it can realistically become part of a nice transit village."

TOD already had some ideas for a transit village when it announced its purchase of the property in 2006, according to a news release from the group. Concepts included a mix of office, retail and residential space, as a well as a hotel, restaurants and parking facilities to serve commuters.

Such a rail station could mean heavy development in North Brunswick - commercial and residential - but it would require other infrastructure work, notably on Route 1.

Kaplan Companies, another developer, has expressed interest in developing major retail chains in the township, Womack said.

The mayor doesn't want to jump into anything too fast, though, but said TOD has indicated it won't wait forever for the township to allow it to develop.